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WA scuttles $200,000 sale of two retired state ferries

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WA scuttles $200,000 sale of two retired state ferries

Sep 06, 2024 | 6:42 pm ET
By Jerry Cornfield
WA scuttles $200,000 sale of two retired state ferries
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Washington State Ferries nixed a deal this week to sell the decommissioned Klahowya, pictured, and Elwha. State officials said new buyers are interested. (Washington State Ferries)

Washington’s nearly two-year effort to unload a pair of retired state ferries ran aground this week.

Officials with Washington State Ferries announced Thursday they had nixed an agreement to sell the Elwha and Klahowya for $100,000 each to Nelson Armas who planned to tow them to Ecuador to be scrapped.

This might turn out to be a good thing as prospective new buyers have discussed ways to “showcase them” in this region, a Ferries official said.

“What we’re hearing right now we’re pretty excited about. The buyers aren’t looking to move them to a foreign country,” said State Ferries spokesperson Dana Warr who did not name them. “We would love to complete a sale as quickly as possible. Our greatest fear is they don’t become derelict vessels sitting on the shores of the Puget Sound.” 

The 144-car Elwha and 87-vehicle Klahowya have been retired since 2020 and 2017, respectively.

Armas and the state had been in negotiations since November 2022. The purchase and sale agreement required the vessels be removed by the end of August, Warr said. 

Armas’ intended to haul them away Aug. 19 from Eagle Harbor Maintenance Facility on Bainbridge Island but canceled due to malfunctioning towing equipment. A few days later came reports that his four hired workers on the tugboat – who hailed from Columbia, Panama and Peru – had been mistreated and underpaid.

“It’s in the best interest of Washington state, the public and WSF to sever ties due to multiple failures to meet contractual obligations and deadlines,” Steve Nevey, assistant secretary of transportation in charge of ferries, said in a statement.

Ferries officials said they did not know of the workers’ poor living conditions and fear of intimidation until they were reported in the media. While Armas has denied these reports, WSF places a strong emphasis on seafarer welfare, officials said in a press release.

“Though Mr. Armas denies these claims, it’s important to reaffirm that WSF’s values prioritize the fair treatment and safety of all crew members,” Nevey said. “We take these matters seriously and are committed to incorporating these considerations into our plans for decommissioned ferries in the future.”

The state agency still owns the Elwha and Klahowya. Armas, by not meeting the deadlines in the agreement to remove the boats, forfeits the $200,000 paid for the boats as damages, Warr explained.

Meanwhile, the sale of a third decommissioned state ferry, Hyak, is pending. More information will be provided when that deal is done, according to the agency. The Hyak, which had 144-car capacity, was taken out of service in 2019.

Selling the retired boats will free up dock space at the maintenance facility for work on the current fleet.